Raising the funding stakes at WTO

BRING your cheque books, would be sound advice to ministers from developed countries travelling to the next gathering of the World Trade Organisation in Qatar. That is because funding is likely to be high on the unofficial agenda as the director-general in-waiting of the WTO, Supachai Panitchpakdi, is looking to garner support for a substantial increase.

He admits, though, it is unlikely to make him popular. 'It is a sort of taboo subject in Geneva, but we should be seriously looking at our funding sources,' he said in Hong Kong, where he was a guest of the British Chamber of Commerce.

Supachai, who takes over from New Zealand's Mike Moore next year, said the present budget is too small for the organisation to carry out its duties fully. 'Someone has to raise the issue,' he said. 'I understand the burdens of some of the major countries, but the WTO is really on a small budget. It is a few hundred million dollars for the WTO against hundreds of trillions of dollars of trade around the world. It is out of proportion.

'This (request) is not to increase salaries for people working in Geneva but to launch more programmes to help developing countries become capable of working on trade negotiations on a more equal level with the rest of the world.'

Supachai, who works for the Thai government, is the first director-general to be appointed from a developing country, although the election last year was riven by divisions which led to a compromise deal, under which he is to share the four-year tenure with Moore.

His background and strong Asian connections were expected to make him more sympathetic to the concern of developing countries that world trade was a winner only for the big, industrialised nations. Those worries led to the sort of street violence which marred the disastrous staging of WTO talks in Seattle in 1999.

Supachai makes it plain that, without criticising Moore, he intends to note the concern of the developing world and is prepared to work with what he calls 'responsible NGOs' - those who do not throw stones at delegates.

Supachai's support of developing nations has brought him up against European Union Trade Commissioner Pascal Lamy in the past, but the DG-designate welcomed this week's moves in Brussels which would tone down Europe's hard line on a new round of trade talks.

These include easing demands on minimum labour standards, which many smaller countries see as a form of Western protectionism. Supachai, however, believes that while some barriers to an agreement to begin thrashing out an agenda at the November meeting have been lowered, the debate is far from over.

'I have said enough to create some arguments with Pascal in the past,' he said. 'Now we are becoming very close in terms of greater flexibility in the EU's position. The only thing left (to discuss) with the EU is its treatment of rules. The EU would like to see new rules on investment and competition included in a new round. We do need to look at these rules, but developing countries are not yet ready.'

Lamy has proposed that if some countries are not ready for full, multi-lateral opening, they could choose a halfway house towards achieving it, but even that might be too much, suggested Supachai.

'I have no objection, but there are still a number of countries who have not yet fully studied, and fully agreed with, this approach,' he said.